Posts Tagged ‘gift tax’
Jointly Owned Property Tax and Estate Tax
Joint ownership of assets between spouses is not a good idea tax-wise since it poses many problems in the administering of an estate. A better way to manage your assets is through a Revocable Living Trust.
For example, in joint ownership, any and all property held by husbands or wives as tenants by the entirety or as joint with right of survivorship will be deemed to be one-half owned by each spouse regardless of which spouse furnished the consideration.
In other words, only half of the property will be incorporated into the estate of the first spouse to pass away.
Caution: only one-half of the joint property will receive a step up in basis, thereby possibly causing increased capital gains taxation.
Regarding jointly owned property by non-spouses, the property will be included in the estate of the first person to die, unless the survivor can prove contribution.
A Revocable Living Trust is a far better way to go.
For more on how to eliminate the need for Probate and reduce the estate tax burden your family will suffer when you die, please contact the South Florida estate planning attorneys of Wild Felice & Partners, PA at 954-944-2855 or via email at info@wfplaw.com. Let us protect what you value most.
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